Shell plc and Exxon Mobil have stopped the planned sale of 11 natural‑gas fields, one exploration prospect, and the onshore Bacton Terminal in Britain’s Southern North Sea to Viaro Energy. The decision was announced on January 14, 2026, after the two majors said the transaction could not be completed because the required completion conditions were not met as commercial and market conditions evolved.
Shell’s spokesperson said, “Despite a constructive process, completion conditions were not met as commercial and market conditions evolved.” Viaro Energy’s CEO Francesco Mazzagatti echoed the sentiment, noting that the parties had worked hard over many months but ultimately agreed not to proceed because the evolving market dynamics made the deal unattractive.
Viaro Energy, which has been rapidly expanding its UK gas portfolio through a series of acquisitions, has faced legal scrutiny in Italy and the UK. The company’s acquisition streak and its CEO’s pending criminal and civil charges add context to the complexity of the transaction, though they were not cited as a direct reason for the sale’s collapse.
The sale was originally announced in July 2024 and was expected to close in 2025. Shell and Exxon’s decision to halt the transaction reflects a strategic pivot: Shell is refocusing on the central and northern North Sea, while Exxon is gradually divesting its UK assets. By retaining the Southern North Sea portfolio, both companies signal a reassessment of the long‑term economics of these assets amid shifting gas demand and pricing.
The deal value was not disclosed, but the Bacton Terminal remains a critical infrastructure asset that processes about a third of the UK’s gas supply and is being considered as a future hydrogen and carbon‑capture hub. Keeping the terminal within the majors’ portfolio preserves potential future value and maintains a strategic foothold in the region.
The halt indicates that Shell and Exxon are re‑evaluating the value of Southern North Sea assets as gas markets evolve. The move could influence future capital allocation and cash‑flow generation, underscoring the companies’ focus on portfolio optimization in a changing energy landscape.
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